DoD's $13.3M R&D contract for CH-47 helicopter systems saw KBR Wyle Services awarded a sole-source delivery order

Contract Overview

Contract Amount: $13,355,162 ($13.4M)

Contractor: KBR Wyle Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-05-04

End Date: 2020-12-31

Contract Duration: 1,337 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR CH-47 CARGO HELICOPTER PROJECT MANAGEMENT OFFICE AND FIXED WING PROJECT OFFICE

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to KBR WYLE SERVICES, LLC for work described as: IGF::OT::IGF SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR CH-47 CARGO HELICOPTER PROJECT MANAGEMENT OFFICE AND FIXED WING PROJECT OFFICE Key points: 1. The contract focused on research and development for critical helicopter systems, indicating a need for specialized technical expertise. 2. While the contract value is $13.3 million, the specific performance metrics and outcomes are not detailed in the provided data. 3. The award was a delivery order under a larger contract, suggesting a phased approach to acquisition or a specific task requirement. 4. The duration of the contract (1337 days) suggests a significant, multi-year effort was undertaken. 5. The absence of small business participation flags raises questions about opportunities for smaller firms in this specialized R&D area. 6. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without detailed performance data or comparable project costs. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not managed diligently. The total award amount of $13.3 million for a multi-year R&D effort appears within a reasonable range for specialized engineering services, but a true value-for-money assessment requires deeper insight into the deliverables and their impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when the requirement is a logical follow-on to a previously awarded contract. The lack of competition means that pricing was likely negotiated directly with KBR Wyle Services, LLC, potentially limiting opportunities for price discovery through a competitive bidding process.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers as the benefit of competitive pressure on pricing is absent.

Public Impact

The primary beneficiaries are the U.S. Army's Project Management Offices for the CH-47 Cargo Helicopter and Fixed Wing aircraft, receiving enhanced system reliability and performance. The services delivered include research and development aimed at improving the operational capabilities and longevity of critical military aviation assets. The geographic impact is primarily within the Department of Defense's operational and R&D infrastructure, with potential implications for military readiness across various deployments. Workforce implications include the utilization of specialized R&D personnel, likely engineers and technical experts, employed by KBR Wyle Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed stringently.
Lack of small business participation noted.

Positive Signals

Awarded to a known entity (KBR Wyle Services, LLC) with presumed expertise in R&D.
Contract duration suggests a substantial and potentially impactful R&D effort.
Focus on improving critical military aviation assets aligns with defense modernization goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace and defense industry is a significant area for R&D spending, with government contracts driving innovation in areas like aircraft systems, materials science, and engineering. Comparable spending benchmarks for R&D in aerospace can vary widely based on project scope, but multi-million dollar contracts for system improvements are common for major platforms like the CH-47.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for them. This suggests that the primary contractor, KBR Wyle Services, LLC, likely performed the work in-house or through larger, established partners. The absence of small business involvement in this specific award means that the direct economic benefits to the small business ecosystem from this particular contract are likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Given the R&D nature and CPFF structure, rigorous oversight of costs, progress, and adherence to research objectives would be crucial. The Inspector General's office within the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, ensuring accountability.

Related Government Programs

CH-47 Chinook Helicopter Modernization Programs
DoD Research and Development Contracts
Aerospace Engineering Services
Military Aviation Systems Improvement Projects

Risk Flags

Sole-source award may limit cost savings.
CPFF contract type requires diligent cost oversight.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to KBR WYLE SERVICES, LLC. IGF::OT::IGF SYSTEM ACQUISITION AND RELIABILITY IMPROVEMENT FOR CH-47 CARGO HELICOPTER PROJECT MANAGEMENT OFFICE AND FIXED WING PROJECT OFFICE

Who is the contractor on this award?

The obligated recipient is KBR WYLE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2017-05-04. End: 2020-12-31.

What specific R&D advancements were achieved under this contract for the CH-47 and fixed-wing aircraft?

The provided data does not detail the specific R&D advancements achieved. However, the contract's objective was to improve system acquisition and reliability for the CH-47 Cargo Helicopter Project Management Office and Fixed Wing Project Office. This could encompass areas such as enhanced avionics, improved structural integrity, more efficient power systems, or advanced diagnostic capabilities. Without access to project reports or technical documentation, the precise nature and impact of the R&D outcomes remain unspecified. Further investigation would require reviewing contract deliverables and performance assessments.

How does the $13.3 million contract value compare to similar R&D efforts for military aircraft systems?

Comparing the $13.3 million value requires context on the scope and duration of similar R&D efforts. For major military aircraft platforms like the CH-47, multi-million dollar contracts for system upgrades and reliability improvements are not uncommon, especially when involving specialized engineering and testing. The contract's duration of over three years (1337 days) suggests a significant undertaking. However, without specific details on the technological advancements sought or the complexity of the research, a direct comparison is difficult. It appears to be a moderate-sized R&D investment within the broader defense aerospace sector.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how were they mitigated?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fixed fee. This can lead to cost overruns if not managed effectively. For R&D, where outcomes can be uncertain, CPFF is often used to allow flexibility. Mitigation strategies typically involve stringent oversight of expenditures, clear definition of work scope, regular progress reviews, and robust performance metrics to ensure the contractor remains focused on achieving the project objectives within reasonable cost parameters. The effectiveness of these mitigations depends heavily on the diligence of the government's program management.

What is the track record of KBR Wyle Services, LLC in performing similar R&D contracts for the Department of Defense?

KBR Wyle Services, LLC has a significant history of performing various services for the Department of Defense, including R&D, engineering, and technical support. While this specific data point focuses on one contract, KBR's broader portfolio often includes complex projects related to aerospace, defense systems, and scientific research. Their extensive experience suggests a capability to handle such R&D requirements. However, a comprehensive assessment of their track record would involve analyzing past performance reviews, contract completion success rates, and any documented issues on previous DoD contracts.

Were there any performance issues or contract modifications during the life of this $13.3M contract?

The provided data does not contain information regarding performance issues or contract modifications for this specific delivery order. Contract modifications can occur for various reasons, including changes in scope, adjustments to timelines, or unforeseen technical challenges. Performance issues would typically be documented in contract performance reports or through formal corrective actions. Without access to the contract file or performance history, it is impossible to determine if any such events transpired during the period from May 4, 2017, to December 31, 2020.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Root Industrial Services Holdings, LLC

Address: 22309 EXPLORATION DR, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,320,089

Exercised Options: $32,320,089

Current Obligation: $13,355,162

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $5,387,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0025

IDV Type: IDC

Timeline